Why is there a difference? b. Is Jayden’s approach permissible? Why or why not?

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Jayden calculates his 2015 income tax by using both Tax Tables and the Tax Rate Schedules. Because the Tax Rate Schedules yeild a slightly lower tax liability, he plans to pay this amount.

  1. Why is there a difference?

b. Is Jayden’s approach permissible? Why or why not?

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Answer

  1. Why is there a difference?

Answer:

One could find the  difference because the tax rates for a particular income range in the Tax Table is typically based on the midpoint amount.

 

 

  1. Is Jayden’s approach permissible? Why or why not?

Answer:

Jayden’s approach permissible  because the eligible taxpayers compute taxable income and he should determine their tax by reference to the Tax Table

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